Tracking California's property insurance market

Property insurance is an essential financial product that enables homeownership and preserves home equity across the United States. In recent years, home insurance premiums have risen far above inflation in much of the country, worsening affordability conditions in an already-challenging housing market.

In the wake of the devastating Palisades and Eaton fires in Los Angeles in January 2025, California’s property insurance market continues to experience unprecedented stress. In May I published a blog post with an interactive map analyzing how the LA fires have strained the state’s Fair Access to Insurance Requirements (FAIR) plan (i.e., the “insurer of last resort”).

Soon after, I had the opportunity to participate in a convening hosted by the California Association of Realtors (CAR) on the topic of California’s homeowners insurance challenges. It was a fascinating event, with informative perspectives from experts on property insurance, wildfire physics, and California’s regulatory context. A copy of the CAR report distilling insights from the event can be found here. Please note this report does not necessarily reflect my views.

As climate change impacts and urban development patterns continue to increase physical risks in the built environment, property insurance will remain an essential tool to mitigate financial impacts. I and many others will continue to track insurance market trends given the implications for affordability and resilience objectives.